- A + A SYDNEY (Sept 29): Australian inflation slowed slightly, a first reading of an official monthly indicator showed, signalling price pressures may be starting to ease in response to rapid-fire interest rate increases. The Consumer Price Index (CPI) rose 6.8% in the year through August from 7% in the prior month, the Australian Bureau of Statistics said on Thursday. Yet, when volatile items such as fruit, vegetables, and fuel were excluded, the indicator edged up to 6.2% in August from 6.1% in July. "The information released today provides an early indication of September quarter CPI inflation," Australian statistician David Gruen said in a statement. The September monthly release will come out on Oct 26, the same day as third-quarter inflation. "The slight fall in the annual inflation rate from July to August was mainly due to a decrease in prices for automotive fuel," Gruen said as the pace of fuel gains slid to 15% in August from 29.2%. The easing of … [Read more...] about Australia’s monthly inflation indicator eased to 6.8% in August
Escalation vs inflation
Paul Schulte The BSE Sensex and NSE Nifty 50 tanked on September 27 amid global growth concerns and weak cues. BSE Sensex crashed 954 points or 1.6 percent to settle at 57145, while NSE Nifty 50 index plunged 311 points or 1.8 percent to finish trade at 17016. Tracking the currency fall versus the dollar globally. For the Indian markets, both equity as well as currency, the correction seems to be more of catch-up as compared to global peers. “The basic math is that the difference in interest rates between two countries is reflected in the difference in the currency,” said Paul Schulte, founder and editor, Schulte Research. "The countries that are not raising interest rates fast enough to counter inflation, while the US is doing it, has to go through the pain of not wanting to control inflation. So the currency absorbs the pain," Schulte said. “The problem is you avoid pain now but you get more pain later. When you import inflation, you're going to import more inflation … [Read more...] about Rate difference between two countries shows currency disparity: Paul Schulte
Share to Twitter Share to Linkedin To support the narrative that earnings growth remains strong, I think S&P 500 corporate managers purposefully understated their first half 2022 earnings so that second half earnings would look better by comparison. The evidence of this sandbagging comes from Operating Earnings [as calculated by S&P Global (SPGI)] and GAAP Earnings for S&P 500 companies dropping lower than Core Earnings for the first time in a while. See Figure 1 for details. My Core Earnings research is based on the latest audited financial data, which is the calendar 2Q22 10-Q in most cases. Legacy Earnings Disagree About the Market’s Profitability In the trailing-twelve-months (TTM) ended 2Q22: S&P Global’s Operating Earnings are 1% lower than Core Earnings, after being 4% higher in 1Q22, GAAP Earnings are 3% lower than Core Earnings, after being 4% higher in 1Q22, Street Earnings, which are marketed as being adjusted to … [Read more...] about S&P 500 Companies Held Back 1H22 Earnings Growth To Show More Growth 2H22
Share to Twitter Share to Linkedin eBay stock (NASDAQ NDAQ : EBAY) has lost 7.8% in the last week, underperforming the S&P 500 (down 6.2%). Further, the same trend was observed over the last ten days (-16% vs -11%) and one month period (-18% vs -13%). Notably, the recent stock market volatility was due to high inflation levels, aggressive interest rate hikes, and geopolitical tensions. The Fed has increased the interest rates five times in the year, with more hikes to follow. While it is aimed at taming inflation, it also has the potential to push the economy into recession. The company operates an online marketplace “eBay EBAY .com”, where third-party buyers and sellers can transact in a variety of products (both new and used goods). It neither owns the inventory nor handles the shipping & handling of goods, making the business model asset light. While the firm’s net transaction revenues decreased 8% y-o-y in Q2 due to a drop in website … [Read more...] about EBay Stock Lost 8% In One Week, What’s Next?
Share to Twitter Share to Linkedin These are curious times for leaders. Management gurus and consultants might have been warning them for years to prepare for a period of upheaval. But surely they meant more of what business people had become used to over recent years — increased competition, new threats from technology and the upstarts it enabled, the challenges of breaking into fresh markets, that sort of thing — not a global pandemic, a conflict that is one of the biggest threats to world peace since 1945 and now, as a result of the first two, an energy crisis and escalating inflation. And that is without taking into consideration the overhanging existential issue of climate change. In the U.K., the situation is made even more difficult for businesses because there has been — without a General Election — effectively a change of government. Whereas the team headed by ousted Prime Minister Boris Johnson was prepared to abandon traditional Conservative … [Read more...] about Truss Plan Adds To Responsibilities Of Already Embattled Managers
Share to Twitter Share to Linkedin Take-Two Interactive stock (NASDAQ NDAQ : TTWO) has seen a 15% fall in a month, largely in line with the broader S&P500 index, down 13%. The fall for Take-Two Interactive, in particular, can be attributed to a Grand Theft Auto VI hack. A hacker uploaded 90 videos from a test build of the game online, and Rockstar Studios - the game’s publisher - confirmed the leak to be real. [ 1 ] Furthermore, higher inflation means people may spend less on gaming and more on necessities. This factor will likely weigh on the overall gaming industry in the near term. A weakness in broader markets owing to rising interest rates, a strengthening dollar, and fears of a recession isn’t helping either. Now that TTWO stock has seen a fall of 15% in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a good chance of an increase in TTWO stock over the next month. … [Read more...] about Down 15% In A Month Will Take-Two Interactive Stock Rebound?
Share to Twitter Share to Linkedin Topline The average price of gas in the U.S. increased for the seventh straight day Tuesday after more than three months of falling prices—and it’s over $5 per gallon in four states amid tight supplies as Russia escalates its war in Ukraine and Hurricane Ian jeopardizes oil production in the Gulf of Mexico. Key Facts Gas is the most expensive in California, where a gallon costs $5.88 on average—up from $5.46 last week, according to AAA data. Nevada, Oregon and Washington also saw jumps back over the $5 threshold, to $5.12, $5.12 and $5.02, respectively—more than a 50 cent increase in Oregon and Washington and a 40 cent jump in Washington. The price of gas increased in 11 other states over the past week, with the biggest rises in Alaska ($4.64 to $4.88), Ohio ($3.45 to $3.65), Indiana ($3.66 to $3.90), Michigan ($3.80 to $4.12) and Wisconsin ($3.46 to $3.88). Experts believe the increase could be … [Read more...] about Gas Prices Rise For 7 Straight Days—Here’s Where It’s Most Expensive